The College of Property Registrars released figures on Friday showing that property sales fell by 26% in the first quarter of 2012 compared to the same period in 2011.
However, the figures also showed an increase of 21.9% over the last quarter of 2011. These numbers are misleading though as the last quarter of the year is traditionally slow for property sales.
The report suggests that the increase is a result of the “especially intense” price drops seen across Spain although I suggest the increase is more likely due to people not shopping for property around Christmas, as is usually the case.
The report says the number of property transactions recorded in the first quarter shows a “relative recovery” in the property market over the last nine months.
The fall in house prices coupled with the continued reduction in IVA on new property sales have encouraged buyers and injected some life into the ailing property market.
El Economista reported that new home sales rose 29.4% compared to the previous quarter with 48,691 sales registered. The sale of second hand properties increased by 14.4% to 43,520 transactions.
All regions recorded an increase in property sales over the previous quarter. The greatest volumes were reached in Andalusia (17,240), Madrid (13,685), Catalonia (12,760) and Valencia (11,590).